Question

The stock that Mr. Ames bought cost him $80 a share. The par value of the stock is $100. If the stock pays $6 a year in dividends, what rate of interest is Mr. Ames getting on his money?

A) 16 2/3 %
B) 7 1/2 %
C) 3%
D) 6%
E) None of these answers

Answer 1

PLEASE HELP

Answer 2

Try setting up the problem like this:
100 (6/80) =

Answer 3

so 7.5%?

Answer 4

That's what I got as well.

Answer 5

ok thanks!

Answer 6

You're welcome! :)